Appleton said in early September its restructuring plan for its business segments is aimed at improving market focus, streamlining the organizational structure, reducing costs and positioning it for international growth.

The company will be organized into three divisions: technical papers, flexible packaging and international. About 40 jobs will disappear, primarily at the Appleton, WI, headquarters.

The company expects the new structure plus other cost reduction efforts already in place to save $8 to $10 million in 2006. Appleton will take a charge of $3.7 million for the restructuring.

Appleton is to form a technical papers division by combining its carbonless, thermal and security papers businesses. US and Canadian sales from those businesses accounted for more than $780 million of Appleton’s $990 million in sales in 2004. Appleton is the world’s largest producer of carbonless paper and the largest North American producer of thermal paper.

The flexible packaging division will contain Appleton’s packaging subsidiaries, American Plastics and C&H Packaging in Wisconsin and New England Extrusion in Massachusetts and Wisconsin. C&H Packaging prints and converts flexible plastic packaging materials for companies in the food processing, household and industrial products industries. American Plastics produces high-quality, custom multilayered films and commercial packaging. New England Extrusion makes single and multilayer polyethylene films for packaging. Its polyethylene films complement the high barrier co-extruded films American Plastics produces. Sales from the division are expected to reach about $100 million for 2005.

As for the International Division: Appleton sells carbonless and thermal products in about 60 countries and international sales accounted for over 20% of 2004 sales. The division will include BemroseBooth, a provider of secure and specialized print services based in Derby, United Kingdom. Appleton employs some 3,400 people, and is employee-owned.